According to CoreLogic’s newest Home Price Index (HPI) for March 2024, year-over-year home price gains remained above 5% in March, marking the fifth straight month of such gains.
CoreLogic further predicts that these gains are projected to stick around for the better part of the next year. Northeastern states continued to post the nation’s largest gains, as more Americans migrate to bedroom communities of major cities and centralized job hubs, as well as areas where household incomes are relatively higher and can sustain the elevated cost of homeownership.
In addition, the inventory gains seen in states like Florida and Texas still lag in the Northeast, a trend that continues to exacerbate supply-and-demand fundamentals and further adds to home price pressure in that region. Consequently, markets with larger additions of homes for sale are now experiencing slowing home price appreciation.
“Home prices increased again this March beyond the typical seasonal uptick, despite mortgage rates reaching this year’s high and the affordability crunch continuing to keep many prospective buyers on the sidelines,” said Dr. Selma Hepp, Chief Economist for CoreLogic. “Even with the long-anticipated break in for-sale inventory, the surging cost of homeownership, further fueled by rising insurance and tax expenses, is holding potential home sales back, as is evident in the slow rise in sales compared with last year. These price pressures reflect the overall supply-and-demand mismatch, as well as continued interest from households with larger budgets.”
Top Takeaways
- U.S. single-family home prices (including distressed sales) increased by 5.3% year over year in March 2024 compared with March 2023. On a month-over-month basis, home prices increased by 1.2% compared with February 2024.
- In March, the annual appreciation of detached properties (5.7%) was 1.6 percentage points higher than that of attached properties (4.1%).
- CoreLogic’s forecast shows annual U.S. home price gains relaxing to 3.7% in March 2025.
- Miami posted the highest year-over-year home price increase of the country’s 10 highlighted metro areas in March, at 10.6%. San Diego saw the next-highest gain at 9.4%.
- Among states, New Jersey ranked first for annual appreciation in March (up by 12.2%), followed by South Dakota (up by 11.5%) and New Hampshire (up by 10.6%). No states recorded year-over-year home price losses.
